ASML and AI Drive European Markets Higher as Luxury Goods Weigh on Gains

On January 28, 2026, European markets experienced significant divergence. The technology sector soared, driven by ASML’s outstanding Q4 results: revenues exceeded expectations at €9.7bn, and orders hit a record €13.2bn (vs. €6.32bn expected). Although net profit was slightly below consensus (€2.84bn vs. €3.01bn), the strong order book and 2026 guidance (€34–39bn in revenues, up ~20%) restored confidence in European semiconductors. ASML’s market cap surpassed $500bn, making it Europe’s most valuable company. Semiconductor peers like Infineon and STMicro also posted strong gains. Meanwhile, luxury stocks slumped. LVMH’s Q4 revenue fell 5.1% y/y, with full-year net profit down 13%, reflecting weak consumer demand, notably in China. This caused sharp declines in LVMH (-7%), Kering, and Hermès. The DAX index held near record highs, supported by tech but pressured by autos. EcoPulse24 analysis highlights a structural split: AI and deep tech drive investment and valuations, while luxury faces global demand fragility. The market favored ASML’s order momentum over macro concerns, despite risks from China and sector cyclicality.